2019-02-28 12:39:00 Thu ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
New York Fed CEO John Williams sees no need to raise the interest rate unless economic growth or inflation rises to a high gear. After raising the interest rate 7 times since 2017 to 2.25%-2.5%, the Federal Reserve now keeps the economically neutral federal funds rate. This neutral interest rate helps restore healthy economic growth on the steady-state trajectory with low inflation when the economy operates near full employment. As of January 2019, the U.S. CPI inflation rate declines from 1.9% to 1.6% below the 2% target level as the U.S. unemployment rate continues to hover around the 3.7% historically low level.
As New York Fed CEO and Fed Vice Chair, Williams considers the current neutral interest rate to be in a good place. This monetary policy stance accords with the congressional dual mandate of price stability and maximum employment. After the most recent FOMC rate-hike holiday, Federal Reserve governors and presidents indicate their clear intention that it may be about time to end their 3-year drive to tighten monetary policy due to a cloudy U.S. economic outlook. This cloudy outlook arises from key complications such as the Sino-U.S. trade and government budget negotiations.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2025-02-27 07:24:00 Thursday ET

Our AYA fun podcasts deep-dive into the current global trends, topics, and issues in macro finance, political economy, public policy, strategic management,
2018-01-29 07:38:00 Monday ET

President Donald Trump delivers his first state-of-the-union address. Several key highlights touch on economic issues from fiscal stimulus and trade protect
2022-11-15 10:30:00 Tuesday ET

Stock market misvaluation and corporate investment payout The behavioral catering theory suggests that stock market misvaluation can have a first-order
2021-05-20 10:30:00 Thursday ET

Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology. Core trade technological advances and disruptive
2017-11-19 08:37:00 Sunday ET

In 2000, a former law professor at Harvard proposed establishing the Financial Product Safety Commission in order to protect consumer rights in the provisio
2022-03-05 09:27:00 Saturday ET

Addendum on empirical tests of multi-factor models for asset return prediction Fama and French (2015) propose an empirical five-factor asset pricing mode